economic impact of tourism in north dakota

ECONOMIC IMPACT OF TOURISM IN NORTH DAKOTA

2020

WWW.TOURISMECONOMICS.COM

Prepared for:North Dakota Department of Tourism

2

The trave l sector is an integra l part of the North Dakota economy. Vis itors genera te s ignificant economic benefits to households , bus inesses , and government a like and represent a critica l driver of North Dakota ’s future . How critica l? Tourism represents 3.3% of North Dakota ’s economy and supports 6.7% of a ll jobs in the s ta te .

By monitoring the vis itor economy, policymakers can inform decis ions regarding the funding and prioritiza tion of the sector’s deve lopment. They can a lso ca re fully monitor its successes and future needs . This is particula rly true for North Dakota as it builds upon its tourism economy. By es tablishing a base line of economic impacts , the indus try can track its progress over time .

To quantify the economic s ignificance of the tourism sector in North Dakota , Tourism Economics has prepared a comprehens ive model de ta iling the wide-reaching impacts a ris ing from vis itor spending. The results of this s tudy show the scope of the trave l sector in te rms of direct vis itor spending, as well as the tota l economic impacts , jobs , persona l income, and fisca l (tax) impacts in the broader economy.

INTRODUCTION

The ana lys is draws on the following da ta sources :

• Survey da ta , including spending and vis itor profile characte ris tics for vis itors to North Dakota

• Bureau of Economic Analys is and Bureau of Labor S ta tis tics : employment and wage da ta , by indus try

• STR: Lodging performance da ta , including room demand, room ra tes , occupancy, and room revenue

• US Census : bus iness sa les by indus try and seasona l second homes inventory

• North Dakota Department of Revenue – sa les tax da ta by indus try and other da ta points

• Bed tax revenues – loca l sources

• Nationa l and Sta te park a ttendance leve ls

KEY FINDINGS

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Visitor Spending

In 2020, 18.7 million vis itors spent $2.1 billion in

North Dakota .

Pandemic affects resultsVis ita tion declined 21% and vis itor spending

dropped 32% as the pandemic a ffects trave l.

Fiscal Contributions

Vis itors genera ted $219 million in s ta te and loca l

taxes , which is equiva lent to $675 in tax savings

for every household in North Dakota .

Employment Supporter

Employment supported by vis itor spending

ta llied 34,559 jobs in the s ta te .

KEY FINDINGSThe pandemic a ffected 2020 vis itor activity

VISITATION AND SPENDING

6

The 2020 vis itor and vis itor spending results have been

s ignificantly impacted by the pandemic. Both the

limita tions and res trictions to mobility, as well as

economic dis ruptions , hit trave l hard.

While the annual numbers a re poor, indica tors in the

la tte r part of 2020 a re not as bad as ea rlie r in the year.

The shutdowns in the spring cut trave l by three-quarters

a t the wors t point. However, once North Dakota began

re -opening and the wea ther warmed up, losses shrank as

North Dakota welcomed vis itors from areas with more

res trictions .

VISITOR SPENDING HIGHLIGHTSPandemic a ffects vis itor activity in 2020

Retail spending holds its own

Despite declines, North Dakota still welcomed 18.7 million visitors in 2020

Visitors spent $2.1 billion in North Dakota in 2019

While both prices and spending opportunities fe ll in

other sectors as a result of the pandemic, in-s ta te

res idents demand for re ta il goods he lped re ta il

spending lose less .

Vis ita tion declines were smalle r for in-s ta te trave le rs

versus those coming from outs ide the s ta te .

The Covid-19 pandemic cut 32% from 2019 vis itor

spending leve ls .

Shutdowns cut spending…but the recovery progresses

7

21.7 22.2 23.2 23.7

18.7

2016 2017 2018 2019 2020

2.2%

21.0%

Vis ita tion fe ll by 5 million vis itors in 2020, a decline of 21%. Even with the decline , North Dakota welcomed 18.7 million person-trips during the year.

Vis ita tion losses were higher for inte rnational and out-of-s ta te res idents than for in-s ta te trave lers .

VISITATION TRENDSTota l vis itor count

North Dakota visitation levels (millions)

Source : Tourism Economics

8

$2.8 $2.8 $3.0 $3.1

$2.1

2016 2017 2018 2019 2020

Vis itor spending in North Dakota declined 32% in 2020, fa lling to $2.1 billion.

The pandemic and its various trave l res trictions cut $1 billion from 2019 vis itor spending leve ls .

Prices in key trave ler sectors—gasoline and lodging, fe ll, exacerbating the decline in spending.

VISITOR SPENDING TRENDSTota l vis itor spending

North Dakota visitor spending ($ billions)

31.8%

4.3%


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Sales tax da ta he lps show like ly vis itor activity by examining sectors key to the vis itor.

Sa les tax collections fe ll s ignificantly in a ll the le isure and hospita lity sectors in the spring as much of the country shut down. As North Dakota reopened and the summer trave l season began, the re were smalle r losses in res taurants . As trave l shifted to more le isure and outdoor activities in 2020, lodging sa les remain depressed.

Examining sectors within the re ta il indus try he lp show changes in spending pa tterns . Re ta il is a key spending sector for in-s ta te trave le rs , a s the s ize of North Dakota means many rura l res idents trave l to find re ta il opportunities . As a portion of those sa les will be in genera l merchandise s tores like Wal-Marts and Targets , the da ta is showing tha t type of spending continued throughout the year. But more discre tionary trave l lagged, evidenced by the s low recovery in appare l s tores .

INDICATORSSales tax collections

North Dakota sales tax collections – leisure & hospitalityY-o-y growth, by quarte r, 2020

Source : Tourism Economics , North Dakota Department of Revenue

-70.0%

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%Q1 Q2 Q3

Accommodat ions

Restaurants

Recreat ion

-45.0%

-40.0%

-35.0%

-30.0%

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%Q1 Q2 Q3

General Merch

Apparel

Misc. Retail

North Dakota sales tax collections - retailY-o-y growth, by quarte r, 2020

Source : Tourism Economics , North Dakota Department of Revenue

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SPENDING DETAILSSpending by ca tegory, 2020

TOTAL VISITOR SPENDINGFood & beverage and retail spending are the top spending categories by visitors in 2020.

Of the $2.1 billion spent in North Dakota in 2020 by

vis itors , food & beverage spending captured $637

million—30% of the average vis itor dolla r.

Re ta il is a key spending sector for North Dakota

trave le rs , capturing 22 cents of each vis itor dolla r, a

tota l of $467 million.

Lodging captured 13.7% of each vis itor dolla r. The

$289 million in lodging spending includes both room

renta ls as well as 2nd home renta l income.

Vis itors spent 14.1% on recrea tional activities in 2020.

FOOD &BEVERAGE

$637M30.1%

LODGING

$289M13.7%

RECREATION

$298M14.1%

RETAIL

$467M22.1%

LOCAL TRANSP.

$422M20.0%


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2020 2016-20202016 2017 2018 2019 2020 Growth CAGR

Total visitor spending $2,834 $2,823 $2,972 $3,101 $2,114 -31.8% -7.1%

Lodging* $437 $428 $442 $467 $289 -38.1% -9.9%

Food & beverages $822 $819 $848 $892 $637 -28.6% -6.2%

Retail $601 $593 $619 $640 $467 -27.0% -6.1%

Recreation $425 $426 $471 $492 $298 -39.4% -8.5%

Transportation** $548 $556 $591 $610 $422 -30.8% -6.3%

As 2020 saw more in-s ta te and le isure trave l in North Dakota , spending sectors with more re liance on those segments declined less . For example , re ta il spending declined jus t 27%.

Lodging spending was hit ha rd by the pandemic. With fewer rooms rented coupled with lower prices , lodging spending in 2020 fe ll by 38%. Gas prices fe ll a long with less spending on car renta ls , driving transporta tion spending lower.

SPENDING TIMELINEVis itor spending timeline

Visitor Spending in North Dakota, 2016 -2020Amounts in millions of dollars

Visitor spending fell by $1 billion in 2020.

Lodging includes 2nd home spendingTransporta tion includes both loca l and a ir transporta tion spending


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Vis itors spent $637 million on food and beverages in 2020; res taurants and grocery s tores saw $255 million less spent by vis itors than 2019. Food & beverage spending remains the la rges t spending ca tegory for vis itors in North Dakota .

The smalles t dolla r declines in vis itor spending in 2020 were in re ta il and lodging. Re ta il was supported by its importance to in-s ta te trave le rs and lodging losses were smalle r numerica lly due to its overa ll s ize in North Dakota .

SPENDING DISTRIBUTIONSpending by ca tegory

North Dakota visitor spending ($ billions)


$437 $428 $442 $467 $289

$822 $819 $848 $892

$637

$601 $593 $619 $640

$467

$425 $426 $471 $492

$298

$548 $556$591 $610

$422

2016 2017 2018 2019 2020

Transportat ion

Recreat ion

Retail

Food &beverages

Lodging

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Closures and sa fe ty is sues a ffected where the trave le r spent in 2020.

With s tadiums and museums closed in 2020, opportunities to spend on recrea tional activities were limited. With tha t, the share of the vis itor dolla r spent on recrea tional activities dropped nearly two percentage points .

As re ta il is a key spending a rea for in-s ta te trave le rs , the re ta il share grew in 2020.

Vis itor spending on commercia l lodging options dropped as a share of each dolla r spent in North Dakota to 13.7 cents of each dolla r.

SPENDING DISTRIBUTIONVis itor spending shares

North Dakota visitor spending (shares)


15.4% 15.2% 14.9% 15.0% 13.7%

29.0% 29.0% 28.5% 28.8% 30.1%

21.2% 21.0% 20.8% 20.6% 22.1%

15.0% 15.1% 15.9% 15.9% 14.1%

19.3% 19.7% 19.9% 19.7% 20.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016 2017 2018 2019 2020

Transportat ion

Recreat ion

Retail

Food & beverages

Lodging

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Despite the decline in vis ita tion and vis itor spending, per-trave le r spending had a much smalle r decline . Per-trip spending fe ll to $134 from $114 in 2019.

VISITATION AND SPENDINGDay/overnight splits

Trips and spending, 2016 -2020Amounts in nominal dollars and number of visitors

Each traveler spends $114, on average, on their trip to North Dakota.


2016 2017 2018 2019 2020

Total visitors (millions) 21.7 22.2 23.2 23.7 18.7

Total traveler spending ($ millions) $2,834 $2,823 $2,972 $3,101 $2,114

Per traveler spending $130 $127 $128 $131 $113

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Spending share by market, 2020Expressed as a percentage of total expenditure per market

North Dakota spending by marketAmounts in millions of nominal dollars and percent of total

Leisure

Day

Domestic

Business

Overnight

International

SPENDINGVis itor spending by marke t



0%

25%

50%

75%

100%

Day/Overnight Market

Spending % of total

Stay $2,114

Day $1,097 52%Overnight $1,017 48%

Market $2,114

Domestic $2,074 98%International $40 2%

TOURISM ECONOMY

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Spending on machinery & equipment s till regis tered $88 million in 2020 despite the pandemic cutting sa les .

As many new cons truction projects a re planned months and years in advance , new cons truction showed minimal declines in 2020, fa lling 2%.

The continued inves tment in new tourism facilitie s and moderniza tion of current vis itor-focused bus inesses will support growth in the indus try as it recovers from the pandemic.

TOURISM SATELLITE ACCOUNTInves tment

Tourism capital investment, 2016 -2020Amounts in millions of dollars

$179 million was spent on construction costs in support of the tourism industry in North Dakota.

Source : Dodge Construction; Tourism Economics

2020 2016-20202016 2017 2018 2019 2020 Growth CAGR

Construction $160 $58 $89 $93 $91 -1.9% -13.2%Machinery & Equipment $159 $150 $152 $127 $88 -30.7% -13.8%

Total $320 $209 $241 $219 $179 -18.5% -13.5%

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TOURISM SATELLITE ACCOUNTCategory contributions , 2020

TOURISM SATELLITE ACCOUNTThe direct contributions of tourism consumption to the North Dakota economy reached $2.3 billion in 2020The direct contribution of tourism includes vis itor spending,

inves tment in tourism facilitie s , governmenta l spending in

support of vis itors , and other tourism consumption.

Domes tic vis itors provided the majority of tourism economy

spending a t $2.1 billion, 90% of the tota l.

Inves tment spending contributed 7.7% with personal

consumption spending in support of tourism adding $11 million.

Governmenta l support of tourism contributed $4 million or 0.2%

of the tota l.

With mos t borders closed for much of 2020, inte rnational

vis itors and the ir $40 million in spending accounted for 1.7% of

the tota l. In 2019, inte rnational vis itors accounted for 5.8% of

spending.


DOMESTIC VISITOR

$2.1B90%

INTL. VISITOR

INVESTMENT$179M7.7%

GOVERNMENT

PCE

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Non-vis itor priva te consumption expenditures (PCE) represent tourism consumer durables such as an RV, boat, or furniture for a vaca tion home.

Government support for tourism includes the budgets for des tina tion marke ting and other budget items in broad support of tourism.

Capita l inves tment (CAPEX) includes cons truction of hote ls and a ttractions , as well as tourism equipment and infras tructure .

TOURISM SATELLITE ACCOUNTTourism economy in North Dakota

Tourism economy spending, 2016 -2020Amounts in millions of dollars


2020 2016-20202016 2017 2018 2019 2020 Growth CAGR

Domestic Visitor $2,591 $2,594 $2,746 $2,905 $2,074 -28.6% -5.4%International Visitor $243 $229 $226 $196 $40 -79.6% -36.3%

Non-Visitor PCE $28 $31 $33 $33 $11 -67.5% -21.8%Gov't Support $7 $5 $5 $6 $4 -38.3% -15.4%

Investment $320 $209 $241 $219 $179 -18.5% -13.5%Total $3,189 $3,067 $3,252 $3,359 $2,307 -31.3% -7.8%

DIRECT IMPACTS

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Core tourismAmounts in number of jobs and millions of nomina l dolla rs

Tourism GDP is the va lue added of those sectors directly

inte racting with trave le rs .

The narrow definition of the tourism indus try counts only

tourism indus try sa les , which excludes capita l inves tment and

genera l government support of tourism. This a lso excludes

indirect and induced e ffects . This definition is cons is tent with

economic accounts .

On this bas is , tourism indus try GDP ta llied $840 million in

2020, and tourism indus try employment ta llied 23,497,

accounting for 4.2% of a ll North Dakota employment.

The tourism industry consists of visitor spending and its direct impacts on the state economy.

TOURISM INDUSTRY IMPACTS


Employment GDP (millions)Total 23,497 $840

Food & Beverage 10,555 $291Lodging 3,857 $169Retail Trade 3,590 $140Recreation and Entertainment 3,262 $144Gasoline Stations 787 $34Other Transport 598 $32Personal Services 559 $10Business Services 179 $8Air Transport 84 $12Finance, Insurance and Real Estate 27 $0

22

71.0%

49.4%

40.2%

6.8% 4.2%

Lodging Recreat ion Food services Retail All indust ries

Tourism employment intensityAmounts in percentage of tota l indus try employment

Tourism employment is a s ignificant part of severa l

indus tries—the majority of lodging employment, 49% of

recrea tion, and 40% of food & beverage employment is

supported by tourism spending.

Tourism shares fe ll s lightly in 2020 with the decline in

vis itor spending. The share of food se rvice jobs supported

by vis itor activity dropped two percentage points to 39.5%

in 2020 as res ident spending rose in importance to

bus inesses .

Tourism employment intens ity

DIRECT TOURISM INDUSTRY

23

30,064 29,951 29,693 29,898

23,497

2016 2017 2018 2019 2020

DIRECT INDUSTRY EMPLOYMENT

Tourism employment growth

Visitor spending directly supported 23,497 jobs

Employment fe ll by 6,400 jobs as many bus inesses were

a ffected by both closures and changes in the types of trave l

tha t occurred.

Key vis itor employment sectors a re recrea tion and lodging.

Employment in both fe ll by nearly 30%.

Despite these drops , the 23,497 jobs supported by vis itor

activity s till represent 4.2% of a ll jobs in North Dakota . One

out of every 24 jobs is directly supported by vis itor spending.

Tourism supported employment in North DakotaAmounts in number of jobs and year-on-year percentage growth

0.7%

21.4%


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MONTHLY EMPLOYMENT TRENDSTourism employment

Jobs losses from the pandemic reached 10% of a ll jobs in

North Dakota in the spring and have leve led off a t a round

6.5% declines in the la tte r part of 2020. Le isure and

hospita lity job losses were down 50% a t the ir nadir, recovered

to within 14% of 2019 leve ls in the la te summer and early fa ll,

but fe ll back a t the end of the year, regis tering -20% by the

end of the year.

To comple te the s ta te ’s recovery from the pandemic job

losses , tourism will need to recover. In the la tte r part of 2020,

27% of a ll North Dakota job losses were in the le isure and

hospita lity sector—losses of a round 8,000 North Dakota jobs .

Employment in North Dakota, by major industryY-o-y growth, by month in 2020

Leisure & hospitality jobs have seen the largest declines

LHS – Le isure and hospita litySource : Tourism Economics , BLS

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

Q1 Q2 Q3 Apr May Jun Jul Aug Sep Oct Nov Dec

Total jobs

Retail jobs

LHS jobs

25

DIRECT INDUSTRY EMPLOYMENTTourism employment

Vis itor activity directly supported 23,500 jobs in North Dakota

in 2020. Comparing this with the direct employment in other

indus try sectors , tourism would rank as the 10th la rges t

indus try.

In 2019, tourism ranked 5th.

Employment in North Dakota, by major industryAmounts in number of jobs

In 2020, tourism was the 10th largest employer in North Dakota

Source : Tourism Economics , BEA

69,100 54,880

36,420 31,660

28,390 26,740

25,480 24,870 24,800

23,500 23,250

22,200 16,470

7,310 6,600

Health care & social assistRetail trade

ConstructionAccomm. & food services

Finance and insuranceManufacturingOther services

Wholesale t radeReal estate & rental/ leasing

TourismProf. & technical services

Trans. & warehousingAdmin. and waste services

Educat ional servicesArts and recreat ion

ECONOMIC IMPACTS

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Our analys is of tourism's impact on North

Dakota begins with actua l spending by

vis itors , but a lso cons iders the downstream

effects of this injection of spending into the

loca l economy. To de termine the tota l

economic impact of tourism in North Dakota ,

we input vis itor spending into a model of the

North Dakota economy crea ted in IMPLAN.

This move ca lcula tes three dis tinct types of

impact: direct, indirect, and induced.

The impacts on bus iness sa les , jobs , wages ,

and taxes a re ca lcula ted for a ll three leve ls of

impact.

How vis itor spending genera tes employment and income

1. Direct Impacts : Vis itors crea te direct

economic va lue within a discree t group of

sectors (e .g. recrea tion, transporta tion).

This supports a re la tive proportion of

jobs , wages , taxes , and GDP within each

sector.

2. Indirect Impacts: Each directly a ffected

sector a lso purchases goods and

se rvices as inputs (e .g. food wholesa lers ,

utilitie s ) into production. These impacts

a re ca lled indirect impacts .

3. Induced Impacts : Las tly, the induced

impact is genera ted when employees

whose wages a re genera ted wither

directly or indirectly by vis itors , spend

those wages in the loca l economy.

ECONOMIC IMPACTS

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IMPLAN ca lcula tes these three leve ls of impact –

direct, indirect, and induced – for a broad se t of

indica tors . These include the following:

• Spending

• Wages

• Employment

• Federa l Taxes

• Sta te Taxes

• Local Taxes

Economic impact flowchart

ECONOMIC IMPACTSHow vis itor spending genera tes employment and income

Accommodation

Food & beverage

Reta il

Ente rta inment/rec

Loca l transporta tion

Air transporta tion

Goods & services purchases

Householdpurchases

VISITORSPENDING

INDIRECT EFFECTS

INDUCED EFFECTS

TOTAL IMPACTS

Production

Jobs

Wages

Taxes

Supply-s ide

e ffects

Household tax impacts

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TOTAL BUSINESS SALES IMPACTSBusiness sa les by indus try

Vis itor influenced spending—direct spending coupled with

cons truction and governmenta l spending in support of

tourism—tota led $2.3 billion in 2020. Including indirect and

induced impacts , tourism activity supported $3.7 billion in

bus iness sa les in North Dakota .

Summary economic impacts ($ billions)

Business sales impacts by industry

Source : IMPLAN, Tourism Economics

Direct Indirect Induced Totalsales sales sales sales

Total, all industries $2,341 $704 $609 $3,655

By industryFood & Beverage $637 $18 $40 $695Retail Trade $477 $19 $51 $547Finance, Insurance and Real Estate $39 $177 $190 $405Gasoline Stations $333 $1 $4 $338Construction and Utilities $179 $90 $29 $297Recreation and Entertainment $261 $11 $8 $280Lodging $269 $0 $0 $270Business Services $6 $149 $35 $191Education and Health Care $1 $117 $118Other Transport $45 $44 $14 $103Personal Services $33 $22 $35 $90Wholesale Trade $50 $32 $81Government $36 $24 $13 $72Communications $43 $21 $64Manufacturing $1 $39 $15 $55Air Transport $26 $1 $1 $27Agriculture, Fishing, Mining $14 $7 $21

Amounts in milions of current dollars

30

$0 $200 $400 $600 $800

Agr iculture, Fishing, MiningAir Transpor t

ManufacturingCommunicat ions

GovernmentWholesale Trade

Personal ServicesOther Transport

Educat ion and Health CareBusiness Services

LodgingRecreat ion and Enter tainment

Const ruction and Ut ilitiesGasoline Stations

Finance, Insurance and Real EstateRetail Trade

Food & Beverage

Direct Indirect Induced

TOTAL BUSINESS SALES IMPACTSBusiness sa les by indus try

Business sales impacts by industryThe indirect and induced e ffects add a tota l of $1.3 billion in

sa les to bus inesses loca ted in North Dakota . This includes

$370 million in sa les supported by vis itor activity but not by

vis itors to finance , insurance and rea l es ta te bus inesses .

Non-gas re ta il trade bus iness sa les directly from vis itors

provided $477 million in sa les . Adding in the $70 million in

re ta il sa les from indirect and induced e ffects , and re ta il

bus inesses rece ived $550 million in sa les resulting from

vis itor activity in North Dakota .

S ignificant benefits a lso accrue in sectors like bus iness

se rvices , education & health ca re , manufacturing, and

communications from se lling to tourism bus inesses and

employees .

$ millionsSource : IMPLAN, Tourism Economics

31

TOTAL VALUE-ADDED IMPACTSGDP

Summary GDP impacts ($ billions)

GDP impacts by industry

Tourism genera ted $1.7 billion in loca l GDP in

2020, or 3.2% of the North Dakota economy. This

excludes a ll import leakages to a rrive a t the

economic va lue genera ted by trave le r activity in the

s ta te .


Direct Indirect Induced Totalvalue value value value

Total, all industries $964 $375 $339 $1,679

By industryFood & Beverage $291 $6 $19 $316Finance, Ins. & Real Estate $97 $114 $212Retail Trade $140 $14 $31 $184Construction and Utilities $129 $34 $11 $173Lodging $169 $0 $0 $169Recreation & Entertainment $144 $4 $3 $151Business Services $8 $92 $20 $121Education and Health Care $1 $75 $75Other Transport $32 $23 $8 $62Wholesale Trade $34 $19 $53Personal Services $10 $17 $19 $46Gasoline Stations $34 $1 $2 $37Communications $19 $11 $30Manufacturing $4 $13 $3 $21Agriculture, Fishing, Mining $11 $4 $15Air Transport $12 $0 $0 $13Government -$8 $9 -$1 $0

Amounts in milions of current dollars

32

$0 $50 $100 $150 $200 $250 $300 $350

GovernmentAir Transpor t

Agr iculture, Fishing, MiningManufacturing

Communicat ionsGasoline StationsPersonal ServicesWholesale TradeOther Transport

Educat ion and Health CareBusiness Services

Recreat ion & EntertainmentLodging

Construction and Ut ilitiesRetail Trade

Finance, Ins. & Real EstateFood & Beverage


TOTAL VALUE-ADDED IMPACTSGDP

In North Dakota , res taurant spending by vis itors

crea tes the mos t loca l va lue with the finance ,

insurance & rea l es ta te indus try close ly following.

The re ta il trade indus try follows as an indus try

providing va lue to North Dakota’s economy from

vis itor activity. Ranking 4th is the cons truction

indus try, jus t ahead of the lodging indus try.

GDP impacts by industry


33

TOTAL EMPLOYMENT IMPACTSEmployment

Tourism supported a tota l of 34,559 jobs when indirect and

induced impacts a re cons idered. This represents 6.2% of a ll

jobs in the s ta te—or one out of every 16 jobs in North

Dakota .

Employment Impacts

Summary employment impacts (number of jobs)


Direct Indirect Induced Totaljobs jobs jobs jobs

Total, all industries 25,390 4,550 4,619 34,559

By industryFood & Beverage 10,555 349 753 11,657 Retail Trade 3,709 262 637 4,608 Lodging 3,857 7 3 3,868 Recreation and Entertainment 3,262 239 102 3,603 Business Services 179 1,367 378 1,923 Construction and Utilities 1,657 179 73 1,909 Finance, Ins. & Real Estate 27 842 530 1,398 Education and Health Care 35 1,244 1,279 Personal Services 559 231 466 1,256 Other Transport 598 326 106 1,031 Gasoline Stations 787 30 43 860 Wholesale Trade 188 115 303 Communications 187 61 247 Government 27 150 65 241 Manufacturing 89 93 19 201 Air Transport 84 2 2 88 Agriculture, Fishing, Mining 62 23 85

Amounts in total employment

34

0 3,000 6,000 9,000 12,000 15,000

Agr iculture, Fishing, MiningAir Transpor t

ManufacturingGovernment

Communicat ionsWholesale TradeGasoline StationsOther Transport

Personal ServicesEducat ion and Health CareFinance, Ins. & Real EstateConst ruction and Ut ilities

Business ServicesRecreat ion and Enter tainment

LodgingRetail Trade

Food & Beverage


TOTAL EMPLOYMENT IMPACTSEmployment

Vis itor spending supports the la rges t number of jobs in the

food & beverage indus try—11,650. The majority of those

jobs a re directly supported by vis itor activity.

Another 4,600 North Dakota jobs a re supported by vis itor

spending in the re ta il trade indus try with lodging employment

providing 3,870 jobs in North Dakota .

More than 4,500 North Dakota-based jobs were indirectly

supported by vis itor activity in 2020.

Employment Impacts


35

TOTAL INCOME IMPACTSPersona l income

Tourism genera ted $675 million in direct income and

$1.1 billion when indirect and induced impacts a re

cons idered. These wages and benefits a re pa id to

people whose jobs a re loca ted in North Dakota .

Personal income impacts

Summary personal income impacts ($ billions)


Direct Indirect Induced Totalincome income income income

Total, all industries $675 $234 $210 $1,119

By industryFood & Beverage $210 $8 $17 $235Retail Trade $103 $9 $23 $134Construction and Utilities $103 $16 $6 $125Business Services $5 $75 $18 $98Lodging $94 $0 $0 $94Recreation and Entertainment $77 $3 $2 $82Education and Health Care $1 $68 $69Finance, Insurance and Real Estate $3 $39 $25 $67Other Transport $25 $18 $6 $49Personal Services $16 $14 $19 $49Gasoline Stations $27 $1 $2 $30Wholesale Trade $16 $11 $27Government $4 $12 $5 $21Communications $11 $5 $16Manufacturing $3 $6 $1 $11Agriculture, Fishing, Mining $5 $2 $7Air Transport $4 $0 $0 $4

Amounts in millions of current dollars

36

$0 $50 $100 $150 $200 $250

Air Transpor tAgr iculture, Fishing, Mining

ManufacturingCommunicat ions

GovernmentWholesale TradeGasoline StationsPersonal ServicesOther Transport

Finance, Insurance and Real EstateEducat ion and Health Care

Recreat ion and Enter tainmentLodging

Business ServicesConst ruction and Ut ilities

Retail TradeFood & Beverage


TOTAL INCOME IMPACTSPersona l income

There a re e ight indus tries in which vis itor activity

supports more than $65 million in personal income.

These range from the obvious—food & beverages

and lodging, to the less obvious—business se rvices

and education & health ca re .

Despite ranking a dis tant fifth in te rms of jobs

supported, the higher wages in the bus iness se rvices

indus try supported by vis itor activity provides $98

million in income to North Dakota job holders , the

fourth la rges t impact.

Personal income impacts


37

TOTAL TAX IMPACTSFisca l (tax)

Visitor spending, visitor supported jobs, and business sales generated $446 million in governmental revenues.

Sta te and loca l taxes a lone ta llied $219 million in 2020.

Each household in North Dakota would need to be taxed an

additional $675 per year to replace the trave le r taxes

rece ived by s ta te and loca l governments .

Tax impacts


Amounts in millions of current dollars2018 2020

Total $600.0 $446.4

Federal $299.5 $227.6 Personal Income $86.5 $73.1 Corporate $38.3 $20.1 Indirect business $17.0 $10.2 Social insurance $157.6 $124.1

State and Local $300.5 $218.9 Sales $146.8 $105.7 Bed Tax $10.1 $6.2 Personal Income $8.9 $7.6 Corporate $5.3 $2.9 Social insurance $10.1 $8.5 Excise and Fees $85.3 $61.2 Property $33.9 $26.7

38

TOTAL TAX IMPACTSFisca l (tax)

Visitor spending, visitor supported jobs, and business sales generated significant revenues for state and local governments alike.

Vis itor activity supported $159 million in s ta te tax revenues in

2020. Local governments rece ived $60 million in revenue from

economic activity associa ted with vis itors .

For the s ta te , sa les tax rece ipts provide a la rge share of

governmenta l revenues . For loca l governments , property taxes

a long with fees , bed, and sa les taxes provide the majority of

governmenta l revenues .

State & local tax impacts


Amounts in millions of nominal dollars

State LocalTax Revenues $158.9 $60.0 Sales $89.0 $16.7 Bed tax $0.0 $6.2 Personal income $7.6 $0.0 Corporate $2.9 $0.0 Social insurance $8.5 $0.0 Excise and fees $50.9 $10.3 Property $0.0 $26.7

ECONOMIC IMPACT IN CONTEXT

40

Visitor spending

Stacking $2.1 billion worth of $1 bills would reach

145 miles high—like having a s tack of bills from

Minot to Devils Lake , ND.

Total visitor business sales

The $3.7 billion in tota l impact in 2020 is s imila r

in s ize to what US consumers spent on chocola te

in the firs t four months of the pandemic.

Taxes

Vis itor supported sa les tax collections brought in

$219 million in s ta te and loca l tax revenues in

2020. Were a ll tourism taxes dedica ted to it, it

would take jus t over two years to pay off the cos t

of replacing the Long X bridge .

Employment

Tourism supports 34,559 North Dakota jobs in

2020—5.5 times the employment (milita ry and

civilian) a t Minot Air Force Base .

ECONOMIC IMPACTSIN CONTEXTFigures in context

APPENDIX

42

GLOSSARY – SPENDINGTerm Description

Lodging Includes vis itor spending in the accommodation sub-sector. This includes food and other se rvices provided by hote ls and s imila r es tablishments .

Food and beverageIncludes a ll vis itor spending on food & beverages , including a t res taurants , ba rs , grocery s tores and other food providers .

Recreation Includes vis itors spending within the a rts , enterta inment and recrea tion sub-sector.

Shopping Includes vis itor spending in a ll re ta il sub-sectors within the loca l economy.

Local transport Includes vis itor spending on loca l transport se rvices such as taxis , limos , tra ins , renta l ca rs , and buses .

Service stations Vis itor spending on gasoline .

Second homesWhere applicable , spending associa ted with the upkeep of seasonal second homes for recrea tional use as defined by the Census Bureau.

43

GLOSSARY -IMPACTS

Term Description

Direct ImpactImpacts (bus iness sa les , jobs , income, and taxes ) crea ted directly from spending by vis itors to a des tination within a discree t group of tourism-re la ted sectors (e .g. recrea tion, transporta tion, lodging).

Indirect ImpactImpacts crea ted from purchase of goods and se rvices used as inputs (e .g. food wholesa lers , utilitie s , bus iness se rvices) into production by the directly a ffected tourism-re la ted sectors (i.e . economic e ffects s temming from bus iness-to-bus iness purchases in the supply chain).

Induced ImpactImpacts crea ted from spending in the loca l economy by employees whose wages a re genera ted e ither directly or indirectly by vis itor spending.

EmploymentJobs directly and indirectly supported by vis itor activity (includes part-time and seasonal work). One job is defined as one person working a t leas t one hour per week for fifty weeks during the ca lendar year.

Personal Income Income (wages , sa la ries , proprie tor income and benefits ) supported by vis itor spending.

Value Added (GDP) The economic enhancement a company gives its products or se rvices before offe ring them to cus tomers .

Local TaxesCity and County taxes genera ted by vis itor spending. This includes any loca l sa les , income, bed, usage fees , licenses and other revenues s treams of loca l governmenta l authorities – from transporta tion to sanita tion to genera l government.

State TaxesSta te tax revenues genera ted by vis itor spending. This will include sa les , income, corpora te , usage fees and other assessments of s ta te governments .

44

ABOUT TOURISM ECONOMICS

For more information:

info@tourismeconomics .com

Tourism Economics is an Oxford Economics company with a s ingular objective : combine an unders tanding of the trave l

sector with proven economic tools to answer the mos t important ques tions facing our clients . More than 500 companies ,

associa tions , and des tination work with Tourism Economics every year as a research partner. We bring decades of

experience to every engagement to he lp our clients make be tter marke ting, inves tment, and policy decis ions . Our team of

highly-specia lized economis ts de liver:

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• Trave l forecas ts tha t a re directly linked to the economic and demographic outlook for origins and des tinations

• Economic impact analys is tha t highlights the va lue of vis itors , events , developments , and indus try segments

• Policy analys is tha t informs critica l funding, taxa tion, and trave l facilita tion decis ions

• Marke t assessments tha t define marke t a lloca tion and inves tment decis ions

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